"Socially Responsible" Capitalism Still Feeds the Disease

As part of an excellent analysis piece on the concept of social responsibility, I did an interview with journalist Toshio Meronek for Truthout. The article really touches on issues located at the root of the state of business ethics. I've copied the beginning of the article below. The full piece, published on September 16, can be read here.


Capitalism with a conscience? That's the idea behind so-called "socially responsible" investments - buying stocks in companies that are screened for criteria like good labor practices, sustainability and whether or not the company is involved in arms manufacturing. The Forum for Sustainable and Responsible Investment, an industry association, claimed in its latest report from 2012 that at least $3.74 trillion in the United States is invested with environmental and social impacts in mind.

Some socially responsible investments (SRI) weed out cigarette companies like Philip Morris; others shun companies with poor environmental records, like BP. But whichever investments you choose, there's a good chance you'll be profiting off companies with bad human rights records because the backbone of many SRI funds are consumer technology stocks - companies like Apple and Samsung, which have histories replete with labor and privacy abuses.

China Labor Watch (CLW) is one of the groups that investigates ongoing labor problems; Kevin Slaten is its US-based program coordinator. He spoke to Truthout about the reports his organization has conducted on Apple, which started to be heavily scrutinized around 2010 when activists brought attention to child labor in some of the factories used by the computer giant. Some of these same factories were the subjects of protests over a number of Chinese labor law violations and mass worker suicides.

According to Slaten, "We constantly find these symptoms, but the disease underlying these symptoms has not been properly taken care of for years. The disease is these companies want the most amount of products in the shortest amount of time."

Read the rest of the article here.

Media Round-up: Lack of reform to working conditions at Apple supplier Catcher

On September 4, China Labor Watch (CLW) along with Green America published an investigative report (PDF) on a long list of labor and safety violations at factory called Catcher Technology in Suqian, China that manufactures Apple computer and phone parts.

In addition to the approaching iPhone 6, this report followed 16 months after CLW had already reported similar labor abuse to Apple. But Apple failed to take the necessary action to see through reform. 

In the wake of this report, I had a chance to discuss findings and underlying causes with WSJ, The Guardian, the South China Morning Post, and CNET. Voice of America did a Chinese-language interview with me. I also stepped onto CNBC's Squawk Box, which you can view below.

Apple responds to campaign, but falls short of progress

This post (with the exception of date changes) first appeared in the blog of Green America.

Co-authored by Kevin Slaten, China Labor Watch, and Elizabeth O’Connell, Green America 
 
On March 12 in partnership with Students and Scholars Against Corporate Misbehaviour and the activism arm of the Nation, Green America and China Labor Watch launched a petition to Apple to improve worker health and safety in the factories that make Apple products.

Apple was quick to respond to our campaign, in a statement shared with Computer World, however, their statement falls far short of meeting the demands of the campaign.  

The Guardian interview on worker safety in Apple factories

I talked with The Guardian's Samual Gibbs to discuss worker safety in Chinese plants making Apple products as part the following article:

Apple urged to stop using harmful chemicals in its factories

Labour and eco groups call for chemical safety in manufacturing at Apple factories in China, and say Samsung, Dell and HP should change too

Pressure groups China Labor Watch and Green America say Apple should stop using harmful chemicals including the solvents n-hexane and benzene in its manufacturing.

But they said that they were not calling for a customer boycott of the products, and that any reports suggesting that were “misinterpretation”.

The groups will call on Wednesday for Apple to “stop needlessly exposing workers in Chinese manufacturing facilities to toxic chemicals now causing severe illnesses” arguing that using those chemicals rather than alternatives saves it a “shockingly small amount of money”.

“Together with Green America, we demand that Apple takes responsibility and removes chemicals like the solvents n-hexane and the carcinogen benzene, which is known to cause leukaemia providing its workers with a legal standard of welfare,” Kevin Slaten, programme co-ordinator at China Labor Watch, told the Guardian.

Apple's child labor

Apple iPhone child worker Shi Zhaokun who died last year
(Photo: China Labor Watch)

In writing a piece on child labor in Apple's supply chain, a reporter for Quartz magazine talked with me about the issue as it pertains to China. The article is an interesting read, but (as I told the reporter in an email after the article was publsihed), despite the seriousness of child labor, from a numbers perspective, child labor is a relatively minor aspect of the labor abuse going on in Apple's supply chain.

Quoted in E-Commerce Times on IBM factory strike of 1,000 workers

IBM is selling its low-end server business to Lenevo, and this includes the sale of an electronics factory in Guangdong Province. But during the process, the factory did not offer economic compensation to its workers as required by law. Over 1,000 workers from the plant went on striek to protest this and other issues, like working hours. A reporter from E-Commerce Times contacted me to talk more about the legal background and labor context. Please see the article here.

It just got harder to prosecute corporate abuse

Credit: James Burke via Flickr (Creative Commons)

A Supreme Court ruling in January has made it easier for large multinational corporations to avoid responsibility for its abuses anywhere in the world.

"Could you help me find a sweatshop for my friend?"

(Reuters)

On Monday, I attended the fifth annual Forecast of China's Economy at the New York Stock Exchange, an event organized by the National Committee on United States-China Relations which invites Chinese experts to discuss China's economic policy and its potential to influence the economy in the coming year.

Protest and interview on the streets of Paris

I had the fortune to be a part of the dramatic protest/media campaign on the streets of Paris against the abuse of Mattel workers in China. This protest was carried out with the leadership of Peuples Solidaires, a dynamic French rights advocacy group. I cannot remember the exact location in Paris, but there were about two to three dozen reporters present, including the AP. Below is the footage and interview shot by GNC News Network.

Don’t Feel Guilty About Chinese Worker Abuse. Get mad instead.

This article originally appeared in In These Times. The photo was published by China Labor Watch.

In October, China Labor Watch (CLW) published a report that exposed a laundry list of labor rights violations in six Chinese factories producing Mattel toys. These undercover investigations revealed that workers perform up to 110 hours of monthly overtime, live in hot, crowded dormitories and do not receive effective safety training or adequate protective equipment. Moreover, the report estimated the factories steal $11 million from workers each year through a combination of “unpaid overtime, work hour trickery and voluntary social insurance.” For more than a decade, the CLW pointed out, Mattel itself has also performed audits of supplier factories—and uncovered similar awful labor conditions.

Quoted in Huffington Post on exploitation in factories producing Dell products

Prolific labor rights advocate/reporter Michelle Chen interviewed me for an article about the latest revelations of labor abuse in Dell-producing factories in China, based on a detailed report by DanWatch. Much of the report is based on undercover investigation by China Labor Watch.

In Chen's article, I was quoted speaking on the issue of temp workers:

The tremendous use of student workers and dispatch or temporary workers is in part a symptom of brand companies, like Dell, driving down prices for production. The factories run on relatively slim profit margins, and the factories attempt to use every trick in the book to cut labor costs, including the use of illegally large proportions of temporary workers.

Back in March, together with Chinese right activist Xue Chao, I published an in-depth essay on the topic of Chinese temp workers. 

Radio interview on labor violations in Apple-producing factories

I was interviewed by California-based Free Speech Radio News yesterday on a recent China Labor Watch report regarding labor abuse in Apple's supplier factories in China. The interview can be found here.

CNBC interview on Apple labor standards

On September 6, I spoke with CNBC about the ethical and legal labor violations found in Apple's supplier factories in China. The interview can be viewed below.

Quoted in Al Jazeera on U.S. manufactuer abusing Chinese workers making Apple phones

Al Jazeera interviewed me yesterday for a report on a U.S.-owned factory in China making iPhones for Apple under abusive conditions. The U.S. manufacturer is called Jabil Circuit, based out of Florida. The Al Jazeera article is linked here.

Quoted in Huffington Post on labor abuse in Apple-producing factories

An August 10 article on labor violations in Apple's Chinese supplier factory, Pegatron, included an interview with me on China Labor Watch's investigative findings. I was quoted saying:

One of the most troubling trends is that Apple is letting suppliers making Apple products, such as Foxconn and Pegatron, compete for Apple orders without ensuring that these suppliers' conditions first meet legal and Apple's own standards. Unless Apple places labor conditions on par with production price and speed, then it will continue to give large orders to abusive factories.

Interviewed by Australian radio on Apple factory labor abuse

A national radio station in Australian (ABC) interviewed me on July 30 in regards to labor abuse in Apple's supply chain. The interview is linked here.

CNBC interview on Chinese workers taking an American boss hostage

I joined a discussion panel on CNBC's Closing Bell on June 26 to talk about Chinese workers near Beijing taking an American boss hostage out of fear for losing their jobs. The discussion can be viewed below.

Interview on Voice of Russia on American boss taken hostage in China

 I was recently interviewed by the Voice of Russia on the incident near Beijing, China in which workers took an American factory boss hostage out of fear of losing their jobs. The interview can be listened to here.

Wages Rising in Chinese Factories? Only For Some

This article and photo originally appeared In These Times. The article was published together with Xue Chao, a Chinese labor rights activist.

If we are to take recent news reports at face value, the collective conscience of the world's consumers can be eased, because conditions at Chinese factories are improving.

Last year, The New York Times told us that these workers are “cheap no more,” and just this February, the Heritage Foundation, touting the virtues of global free trade, claimed that Chinese factory wages have risen 20 percent per year since 2005. Foxconn, Apple's major supplier and the manufacturer of approximately 40 percent of the world's consumer electronics, says it will hold free union elections every five years.

But Pollyannas should take pause: The average migrant worker's $320 monthly salary in 2011 was actually 43 percent less than the $560 national average, according to government statistics. And though it's true that Foxconn will permit the election of union leaders, we have yet to see how much China's so-called democratic unions can empower the workers they purport to represent.

Quoted in Mother Jones on Foxconn riots

After a riot occured in a Foxconn factory producing the iPhone 5 in Taiyuan, China, Mother Jones reported on some of the details, interviewing me (representing China Labor Watch) in the process. Link to article.